A car can be truly personal for some people. Sure, for some, it’s just a vehicle that gets you from A to Z, but for some, it’s an extension of their very person and personality. Some people tend to be in their car for quite some time during the regular workweek. And seeing that congestion is probably getting worse rather than getting better, people will be seeing much more of their car in the future.
But what are some pro tips when it comes down to making money sensible decisions when it comes down to your automobile of choice? Here are some points to consider.
New versus Used
You will have to decide on new versus used and also in most cases if you want to borrow money or will pay cash. Sure, a new car sounds nice, even on finance, but you will have to consider that a new car loses a lot of its value in the first few years. If you are going for a new car, pick a vehicle that has excellent resale value when the time comes to exchange for a newer car. Sports and luxury cars retain their value naturally, and obviously reliable and durable vehicles will be highly sought after.
There is always a demand for a Volkswagen Bus or a classic Defender. Top tip: Land Rover has an all-new Defender. How good is the new Land Rover Defender? A monocoque construction, great air suspension, and the biggest tires you have ever seen might mean you are on to a winner.
Regardless if you buy new or used, the most important thing to calculate is what the consumption cost of running the car is. This is the annual running costs (including insurance and road tax) plus the estimated value depreciation per year (beware, this will be steeper for new cars in the first few years).
The value that comes out of this is the true cost of running a car. You will need to decide if that’s worth it and/or affordable. You will be surprised that sometimes the cheapest car to buy outright might be the lesser option. Then there is this element of the joy of driving the vehicle. This might be worth some extra investment per year.
A choice a lot of people are struggling with is going electric or staying traditional. Electric Vehicles (EVs) are not only better for the environment, but a full tank/battery is cheaper with EVs. The price of electricity is generally much lower than whatever you can get at the pump. The real challenge with EVs is that charging points are not as widespread as the fossil fuel counterparts.
Also, a full charge can take up to 3-4 hours for most EVs dependant on the capacity of the charger point. This is why careful planning around the range of your EV is critical to ensure it fits nicely in your routine. Being able to park overnight at an EV point near your home is ideal for driving away with a full battery or having charging points at your place of work.